There is a special type of auction that can be used to improve Black homeownership at a low cost.
Successful bidders can take ownership of commercial or residential property and even land. Previous owners failed to pay property taxes, so the local government took ownership and these tax deed auctions are a way for them to collect delinquent taxes.
The successful bidder on a home typically pays the fees associated with the bid amount, but there may be other liens or fees attached to the property. However, you can find this out by checking with your local jurisdiction. But there are some risks.
Because it’s an auction, you can’t look inside of the home before purchasing. The previous owner may also have a redemption period where they can get back their home, but you’d get back your money plus interest. The bottom line is that research is crucial.
Tax deed auctions can be risky, but with proper research, they can be a great way to acquire a home. However, just imagine if we didn’t have to rely on these types of auctions to improve Black home ownership in the first place?